Property industry supporting strong economic growth

Property industry supporting strong economic growth

The property industry is continuing to drive the Australian economy according to the latest economic growth data.

The Australian economy grew by 0.9 per cent in seasonally adjusted terms in the June 2018 quarter National Accounts released last week, with annual growth of 3.4 per cent.

Investment in new dwellings increased 3.6 per cent for the quarter, with strong results in Victoria and South Australia.

The construction industry grew by 1.9 per cent for the quarter.

Construction within the residential property sector grew by 3.1 per cent and non-residential property sector by 1.3 per cent over the quarter.

The ABS noted that the recent pickup in new dwelling investment reflected strong approvals in early 2018 which are now flowing through to commencements.

“The property industry is helping to propel economic growth to its highest level since 2012, highlighting its importance as a driver of jobs and economic prosperity,” said Ken Morrison, Chief Executive of the Property Council.

“Our national economic well-being depends on a strong property industry, supported by smart investment in vital public infrastructure for our growing cities.”

“The benefits of growth are overwhelmingly positive, but must be locked in and supported by good planning and smart infrastructure investment to ensure all Australians reap the gains,” Mr Morrison said.